$70bln Offshore Wind Opportunity to US Supply Chain

Laxman Pai
Monday, April 1, 2019

America's burgeoning offshore wind industry, which is projected to generate nearly 20 gigawatts (GW) of clean, cost-competitive power in seven East Coast states by 2030, presents a nearly $70 billion CAPEX revenue opportunity to businesses in the U.S. offshore wind supply chain.

The Special Initiative on Offshore Wind (SIOW), in conjunction with the Renewables Consulting Group (RCG) has announced the publication of a new report detailing the opportunities businesses in the U.S. offshore wind supply chain, which projected the United States’ offshore wind is projected to generate nearly 20 GW of clean, cost-competitive power in seven East Coast states by 2030.

Among key industry components required for such a utility-scale build-out of U.S. offshore wind include: More than 1,700 offshore wind turbines and towers — $29.6 billion;  More than 1,750 offshore wind turbine and substation foundations — $16.2 billion;  More than 5,000 miles of power export, upland and array cables — $10.3 billion;  More than 60 onshore and offshore substations — $6.8 billion and a wide range of marine support, insurance and project management activities — $5.3 billion.

The study also details rising state commitments and forecast power procurements through 2030:  New York, 7.7 GW (9 GW by 2035), New Jersey, 3.5 GW, Massachusetts, 3.2 GW, Connecticut, 2 GW, Maryland, 1.2 GW, Rhode Island, 1 GW, and Virginia, 12 megawatts. Together, these total more than 18 GW of U.S. offshore wind power.

"America's offshore wind industry is taking off and what people see now is just the tip of the iceberg," said Stephanie McClellan, study author and Director of SIOW, at the University of Delaware's College of Earth, Ocean and Environment. "States and industry suppliers are leading the way and eager for clarity on the path ahead. Our analysis illuminates the market's supply chain needs, timing and pace, and $70 billion in CAPEX for businesses to translate GWs into growth opportunities and build this extraordinary enterprise."

Randall Luthi, President of the National Ocean Industries Association said:  "NOIA has long advocated for all-of-the-above energy and new offshore energy growth in America. Our members look forward to participating in the massive opportunity presented by offshore wind. The report identifies significant opportunities for the supply chain that will build, supply and support the U.S. offshore wind sector."

Categories: Logistics Wind Power Offshore Wind

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